ISO 27001 is a globally recognized standard renowned for its stringent requirements pertaining to the establishment, implementation, maintenance, and continuous enhancement of an information security management system. b-next has undergone rigorous assessments and audits to align its practices with industry best practices and achieve this prestigious certification.

“We understand the paramount importance of data security and privacy in today’s interconnected digital landscape,” said Wolfgang Fabisch, Chief Executive Officer at b-next. “By obtaining the ISO 27001 certification, we reaffirm our commitment to our clients and partners that their sensitive information is treated with the utmost care and protected against unauthorized access, cyber threats, and potential data breaches.”

With this certification, clients can place their trust in b-next’s fortified processes designed to ensure the confidentiality, integrity, and availability of their critical data. The ISO 27001 certification serves as a testament to b-next’s dedication to maintaining the highest level of data protection and security, enabling its customers to navigate the digital realm with confidence.

“We extend our heartfelt gratitude to our valued clients for choosing b-next as their trusted partner,” added Wolfgang Fabisch. “Together, we will stride into the future, equipped with the knowledge that our solutions are backed by a comprehensive and internationally recognized framework for information security.”

b-next’s commitment to excellence, underscored by the ISO 27001 certification, not only reflects its dedication to information security but also sets the stage for continued innovation and customer-focused solutions in the ever-evolving landscape of financial security.

New key accounts, a solid foundation for future operations and innovative solutions: The b-next management board reports that the software developer hailing from Herford, Germany, is looking back on a successful business year 2019. Such a year-end result is anything but a matter of course in an industry as competitive as the software sector.

‘The market is driven by innovations that are raising the bar and setting new expectations at an ever increasing pace,’ explains Wolfgang Fabisch, Chief Executive Officer (CEO) at b-next.

As the company is competing on an international scale, the competitive pressure is especially high, says Fabisch. ‘There is worldwide demand for our compliance software,’ states the CEO, ‘however, we are also facing competition from around the globe’. Therefore, it is important to focus on delivery of the services that a company can provide to its customers and not solely on the best ideas. Hence, the company is all the more delighted about having attracted major new customers in Japan and Russia in the past year.

b-next was able to achieve another notable success with regard to its presence in the market of international energy companies. ‘Our roots lie in the financial sector,’ says Wolfgang Fabisch, ‘but in recent years, we have managed to gain ground in the energy market. Our compliance solutions have become successfully established in this sector.’

In its core business, b-next was able to increase recurring revenues to a remarkable share of 75%, which makes for a sound foundation for the company’s future.

‘Thanks to our committed employees, we are looking back on another successful year,’ praised Wolfgang Fabisch. The b-next management aims at making 2020 another year of growth. To achieve this goal, the company has long started to establish itself in new, innovative fields. One of the future-oriented topics the company is currently exploring is artificial intelligence (AI). In the field of AI, b-next has worked out market-ready solutions and complex applications in close collaboration with international customers, partners and notable universities.

About b-next

b-next AG is one of the world’s leading providers of corporate software in the capital markets trading surveillance and compliance sector. The corporation has around 70 employees. Its customer base includes renowned banks, brokers, supervisory bodies and energy suppliers. In the 30-year history of the company, several hundred customer projects have been successfully carried out. b-next is represented by its own branch offices in Germany, Great Britain and the United States.

The slogan ‘SECURE | PROTECT | COMPLY’ stands for the company’s powerful and comprehensive solutions covering the entire spectrum of compliance requirements in the capital markets. b-next’s products help companies meet regulatory requirements and manage operational risks.

The major value driver for b-next are self-developed, innovative, cloud-based compliance applications as well as the use of artificial intelligence.

Neue Großkunden, stabile Basis, innovative Lösungen. Auch für das Jahr 2019 kann die Geschäftsführung des Herforder Softwarespezialisten b-next ein positives Ergebnis vorweisen. Und das ist alles andere als selbstverständlich.

Denn kaum eine andere Branche ist so hart umkämpft wie der Software-Sektor. „Der Markt wird unaufhörlich von Innovationen getrieben, die in immer kürzeren Abständen neue Impulse setzen und Erwartungen erzeugen“, erklärt Wolfgang Fabisch, Chief Executive Officer (CEO) bei b-next.

Da sich sein Unternehmen auf internationalem Parkett bewege, sei der Wettbewerbsdruck besonders hoch, so Fabisch. „Unsere spezielle Compliance-Software wird auf der ganzen Welt nachgefragt“, erklärt der CEO, „allerdings sind auch unsere Wettbewerber rund um den Globus verteilt.“ Es gehe also nicht immer allein um die beste Idee, sondern auch um den Service, den ein Anbieter für seinen Kunden leisten kann. Umso erfreuter ist man bei den Herfordern darüber, dass im vergangenen Jahr wichtige neue Großkunden in Japan und Russland gewonnen werden konnten.

Als weiterer großer Erfolg wird die inzwischen sehr gute Präsenz von b-next im Bereich der internationalen Energieunternehmen angesehen. „Unsere Wurzeln liegen im Finanzsektor“, erläutert Wolfgang Fabisch, „doch in den vergangenen Jahren ist es uns gelungen, auch auf dem Energiemarkt Fuß zu fassen. Unsere Compliance-Lösungen haben sich auch auf diesem Feld erfolgreich etabliert.“

Im Kerngeschäft konnte b-next den Anteil der wiederkehrenden Umsätze auf mittlerweile beachtliche 75 Prozent steigern. Eine stabile Basis für die Zukunft.

„Wir schauen auf ein Jahr zurück, das vor allem durch den großartigen Einsatz unserer Mitarbeiterinnen und Mitarbeiter erneut erfolgreich verlaufen ist“, so Wolfgang Fabisch. Auch 2020 soll nach Wunsch der b-next-Geschäftsführung ein Wachstumsjahr werden. Damit aus dem Wunsch nachweisbare Realität wird, hat sich das Unternehmen längst neuen, innovativen Feldern gewidmet. Eines der wichtigsten Zukunftsthemen, mit dem sich das Unternehmen befasst, ist die Künstliche Intelligenz (AI). In enger Zusammenarbeit mit internationalen Kunden, namhaften Partnern und renommierten Universitäten erarbeiten die Herforder Software-Spezialisten hierzu marktreife Lösungen und komplexe Anwendungen.

Über b-next
Die b-next AG ist ein weltweit führender Anbieter von Unternehmenssoftware im Bereich Capital Markets Trading Surveillance und Compliance. Die Unternehmensgruppe beschäftigt rund 70 Mitarbeiter. Zum internationalen Kundenstamm zählen namhafte Banken, Broker, Aufsichtsbehörden und Energieversorger. Mehrere hundert Kundenprojekte wurden bislang in der 30-jährigen Firmengeschichte erfolgreich umgesetzt. b-next ist in Deutschland, England und Amerika mit eigenen Standorten vertreten. Mit dem Claim „SECURE | PROTECT | COMPLY“ beschreibt b-next die leistungsstarken und umfassenden Lösungen, mit denen das Unternehmen das gesamte Spektrum von Compliance- Anforderungen für die Kapitalmärkte abdeckt. b-next unterstützt damit Unternehmen bei der Erfüllung regulatorischer Anforderungen und bei der Beherrschung operativer Risiken. Werttreiber des Herforder Unternehmens sind in erster Linie selbstentwickelte, innovative Compliance-Anwendungen in der Cloud sowie der Einsatz von Artificial Intelligence.

The new combined offering integrates eComms surveillance suite software from Catelas with CMC:eSuite, b-next’s trade surveillance and compliance solution. Patented Catelas algorithms blend relationship analytics and behavioural science to present compliance officers with an unprecedented view into how business is conducted. b-next’s CMC:eSuite detects market abuse, insider trading, and conflict of interest, as well as derivatives/OTC monitoring, best execution reporting and monitoring of trading activity. The integrated solution helps compliance officers to visualise communications, information barriers, control rooms, watch list networks, and Chat rooms, automatically. This helps compliance officers to identify high-level risks quickly.

b-next CEO, Wolfgang Fabisch commented, “Catelas’ behavioural algorithms uncover how people connect to do business and analyse risk within these networks. Integrating Catelas with b-next trade surveillance, delivers an holistic view of business risks. Together, we help our clients to make smarter, faster, more cost effective risk and compliance decisions. This helps them to meet regulatory mandates, manage risk and drive business efficiencies, while protecting their global reputations.”

Eddie Cogan, CEO and founder, Catelas said, “Our collaboration with b-next pairs Catelas’ eComms surveillance suite with b-next’s powerful automated trade surveillance solution. Together we will deliver a broader, more risk-based and context driven approach to supervision and surveillance.”

The whitepaper titled “Adhering to the FX Global Code of conduct” was produced in collaboration with ACI Americas and Thomson Reuters. It recognises that smaller institutions engaging in FX activities, face a challenge to ensure they can meet some of the Code’s certification requirements. The paper identifies three leading principles within the Code where advanced technology can help. It highlights how the adoption of sophisticated automated surveillance tools and trading platforms can offer market participants a practical and cost effective means of meeting the requirements of the Code. This applies particularly to the principles relating to specific areas of execution, risk management and compliance, as well as trade confirmation and settlement.

Commenting on the role and benefits of automated surveillance, Wolfgang Fabisch, CEO b-next, said, “Surveillance is a complex, large and dynamic task, it’s therefore ideally suited to automation. Database technology is the key to successful, cost effective outcomes. Advanced automated tools offer in-memory techniques for ultra-fast data processing. They also include intelligent, highly flexible rules with intuitive parameter controls that skilled domain experts can use without in-depth IT knowledge. The net result for market participants will be a reduction in workloads and costs when adhering to the Code. As the code gains further acceptance, we believe the case for adopting proven technologies will become increasingly compelling.”

Jack Drohan III, President, ACI America commented, “I welcome this paper, which explores how automated surveillance tools and advanced trading platforms from b-next and Thomson Reuters can help market participants to prepare and adhere to the requirements of the FX Global Code.”

Commenting on trading platform conformity with the principles of the Code, Neill Penney, managing director and co-head of Trading at Thomson Reuters said, “Thomson Reuters is committed to upholding fair and efficient FX markets and helping our customers adhere to the requirements of the Global Code of Conduct. Thomson Reuters Deal Tracker allows front, middle and back office users at banks – as well as relevant Compliance departments – to monitor Thomson Reuters Dealing conversations in real time. It also allows monitoring of trades from Matching, FXall and external venues through Thomson Reuters Trade Notification. This helps to support good practice for responsible participation in the wholesale foreign exchange market.”

• The whitepaper is available now for free download here:
  Download Whitepaper: Adhering to the FX Global Code of Conduct

Dinneny joins b-next from Thomson Reuters where he was Head of Compliance, Surveillance and Derivatives solutions. Prior to this, he was Global Head of Trade Surveillance and Employee Compliance Technology for JPMorgan Chase. He holds an MBA from New York University Stern School of Business.

Thomas Dinneny, b-next Head of Business Development Americas, said, “I am delighted to join b-next’s highly talented team. Our proven trade surveillance solutions are ideally placed to helptackle market abuse and address regulatory requirements. I am looking forward to making a contribution to b-next’s success and to driving our growth in the Americas.”

Commenting on the new appointment, Wolfgang Fabisch, CEO b-next said, “b-next is committed to growing and strengthening its presence in financial centres globally and the Americas is a key marketfor us. With his highly relevant industry background in surveillance and compliance solutions, Thomas will be pivotal to our ambitious plans for growth.”

New York, 12^th July 2016, b-next, a specialist provider of capital markets compliance solutions, has been awarded FX Week’s e-FX Award for best e-surveillance solution provider. A panel of seven judges including the editor of FX Week, as well as experts in regulation and technology concluded that b-next demonstrated better levels of accuracy, value for money and reliability than its rivals in the award.

The 13th annual e-FX Awards were presented in New York on July 12th, following the FX Week USA conference. Hosted by FX Week, the awards recognise industry excellence in electronic foreign exchange among banks, brokers, vendors and the buy side.

Commenting on the award win, Wolfgang Fabisch, CEO b-next, said, “b-next constantly strives to offer proven surveillance and compliance solutions to clients worldwide. We are expanding globally and have a constant thirst for innovation, collaboration and adding value. This award from FX Week honours and recognises the hard work and passion that everyone in b-next contributes towards our aim of protecting reputations in the capital markets.”

Winners of the 13th FX Week e-FX Awards

Best e-Surveillance Solution Provider: b-next

Overview

Existing financial regulation in the US and regulation coming into force in the European Union[1] requires the recording of digital communications. Technology plays an important role in meeting these more onerous regulatory requirements. Digital Communications Analytics (DCA) is an innovative combination of  communications and surveillance technologies. It aims to address regulatory requirements and offers capital markets participants a means of protecting reputations that have been tarnished by recent cases of market abuse. Expectations are high for such technologies, with research analysts forecasting the market for speech analytics solutions  alone, will experience compound annual growth of 22% by 2020. This paper explores the capabilities of the latest digital communications analytics technology including:

• Data visualisation and analysis
• Data interrogation (search and find)
• Multi-language support and reporting
• Alerts

It also examines DCA’s role in the surveillance of trading activities to combat fraudulent activities and how it can help capital markets participants to comply with new MAR regulations. 

What is Digital Communication Analytics (DCA)?

DCA is an innovative trading and surveillance technology solution that combines and integrates advanced speech and digital text analytics with capital markets surveillance. The solution can help you to search and analyse voice call recordings and digital text communication including email, chat, social channels, by time frame, trader, counterparty and trader desk. This capability addresses increased regulatory demand for trading and communications surveillance, especially as regulators across the globe align capital markets mandates and rules, and increase financial and criminal penalties for fraud and market abuse. 

A growth market 

The market for communications analytics is experiencing global growth. Recent research predicts that the speech analytics market alone is estimated to grow from USD 589.1 Million in 2015 to USD 1.60 Billion by 2020, at an estimated CAGR of 22.0% from 2015 to 2020.[2] While contact centres are turning towards speech analytics solutions to efficiently gain insights from customer interaction data, the research also goes on to explain that one of the main drivers for such growth is an increased focus on stringent risk and compliance management. 

DCA’s role in regulation, reputation, and the detection of market abuse

Recent Libor and FX benchmark price manipulation occurrences and high-profile insider trading have damaged the reputations of some of the most respected institutions, resulting in nine figure fines for large banks. This has brought the need for analysing and monitoring digital communication into sharp relief. Consequently compliance regulations across the world have tightened to include monitoring of all digital communications.

Regulation

In the U.S., the Dodd-Frank Act requires searchable and identifiable voice recordings, while in the EU, the Financial Services Authority and European Securities and Markets Authority point to MiFID II Level 1 regulations and legislation requiring the recording of telephone conversations and electronic communications.

Reputation

Regulation is not the sole driver however. Loss of confidence in investor relations, as well as challenges to hard won reputations, have prompted a call for improved risk management and surveillance capabilities^[3]. Innovative surveillance technology offers protection against damages to reputation from market abuse and fraud, while also ensuring compliance requirements are met and associated processes are followed.

Detection

The vulnerability of the largely unregulated Forex market, to market manipulation is highlighted by forms of trading behaviour associated with Forex rigging which include collusion. Such behaviour manifests itself when several traders collude to share information and place orders at the same time during the ‘fix’ window, the impact on price movement can be dramatic, producing greater potential profits for traders in collusion.

The most advanced and effective market surveillance solutions will have the capability to detect and report suspicious trading activity involving collusion. A lot of daily benchmark rates are calculated based on trading activity so it is important that compliance monitoring is implemented. However, some benchmarks are still calculated based on a bank making a submission. Such submissions are often verbal. It is here where there’s a clear need for participants to implement voice-monitoring solutions for this type of activity, especially in the light of the MAR directive and other regulatory requirements for searchable voice recordings. DCA can prove particularly relevant and valuable as a tool to address this need.

Key DCA capabilities 

The benefits of automation

Such is the complexity, magnitude and dynamic nature of the surveillance task that automation is emerging as a viable and practical solution. The benefits of implementing automated solutions are wide reaching and can include:

• The ability to respond quickly to regulatory changes and reporting requirements
• A reduction in workload and associated costs
• Proactive management of suspicious trends
• Improvements to the quality of market abuse monitoring
• Improvements to risk management and compliance oversight

DCA solutions will include a high degree of surveillance automation while also demonstrating the following important capabilities.

Advanced database technology

Advanced database technology is pivotal in the surveillance and analysis of digital communication. In-memory techniques enable ultra-fast data processing, while intelligent, highly flexible rules with intuitive parameter controls can be used those with little knowledge of technology. 

Intuitive state of the art user interfaces

Ease of use not only minimises training requirements, but also allows skilled domain experts to use systems without in-depth IT knowledge. Intuitive interfaces will play an important role in simplifying, search, navigation and workflows, while accelerating insights. 

Data visualization and analysis

Sophisticated business intelligence tools can enable strong visualization capabilities, as well as powerful, easy-to-use case management and reporting tools. Data support should include: SMS / Text messages; Instant Messaging; Emails; Facebook; Twitter Feeds; Market Data / News Feeds. 

Data analysis

DCA solutions should have the capability to analyse data to reveal statistics relating to digital communication. This would include trends and frequency of communication, or the identification of participants in digital conversations and a ranking of key words used. 

Search and find

The ability to search and find digital communications data is stressed by The Dodd-Frank Act, which requires searchable and identifiable voice recordings. DCA solutions must therefore offer fast, accurate and intelligent interrogation of voice and data communications activity. Ideally this will be achieved via keyword searches to find recorded voice and data communications, allowing users to listen to historical voice recordings or view digital text based communication on demand. 

Multi-language support and reporting

As trading takes place across borders and trading venues, multi-lingual and reporting capabilities are crucial features. DCA solutions should be capable of lossless transcription of calls in multiple languages. Reporting functionality should include a tamper-proof audit trail, history of alerts and calls. 

Alerts

The ability to alert users to potentially fraudulent activity is central to a DCA system. Important features will include the tagging of communications data for comment as required so that unusual communications data is linked and attached to alerts and highlighted for future reference. 

Conclusion

New compliance requirements from MAR, reputational risk and the need for detection of market abuse, build a compelling case for adopting surveillance solutions that incorporate DCA capabilities. With the MAR countdown already underway and the availability of DCA solutions including b-next’s own CMC:DCA offering, the case for MAR readiness has never been more compelling. 

About b-next

b-next is a specialist global provider of proven multi-venue, multi-asset class software solutions for Capital Markets Surveillance and Compliance. We support an expanding international customer base of financial institutions, investment managers, energy traders, trading venue operators, and supervisory authorities, helping them to meet regulatory mandates, manage risk and drive trading efficiencies. Visit www.b-next.com

[1] Article 7 DIRECTIVE (EU) 2015/2392

[2] http://www.researchandmarkets.com/research/n6vkk3/speech_analytics

[3] Financial Conduct Authority – Financial Benchmarks: Thematic review of oversight and controls – July 2015

By establishing a presence in Singapore, b-next will aim to meet the growing needs of local market participants for solutions that cover all their capital markets trading activities, including conflict of interest management, insider trading, market abuse, across all asset classes and trading venues.

Glen Wilson, head of b-next’s New York office will be responsible for establishing the Singapore office and hiring local talent.

Wolfgang Fabisch, CEO b-next, said, “b-next is experiencing strong demand globally for its capital markets surveillance solutions, with notable interest in Singapore for our FX surveillance tools. We are supporting the changing regulatory world for global markets and will round-out our operations with the Singapore office, less than a year after launching in New York. With a strong presence on the ground in Europe, the US and in Asia, we are well positioned to meet demand for surveillance solutions in the world’s main financial centres.”